It appears that among the reasons given by the FSA to abandon
polarisation is that it is a major market distortion. This does not
constitute a reason for change.
In a free market, the powerful and well informed exploit the weakness
and ignorance of those with whom they deal. Before 1986, financial
consumers, who largely exhibit the latter qualities, had no
protection against providers and intermediaries. The whole point in
financial regulation was to tilt the market in their favour.
I suggest that financial regulation is without point unless it
produces a major market distortion.
CB Russell Proprietor,Russell Harman & Co,Chalfont St Giles,Bucks